Thailand to Introduce Direct PPA Policy, Benefiting Local and International Enterprises
Dateļ¼2025-02-20
The Thai government plans to allow businesses to purchase electricity directly from renewable energy producers, such as #solarfarms, eliminating the current requirement to buy through the Electricity Generating Authority of Thailand (EGAT). The policy framework is expected to be finalized by the end of the year.

This policy shift offers multiple benefits for local and international enterprises:
1/ Stable and Green Energy Supply – Businesses can secure long-term clean energy access through direct power purchase agreements (PPAs), supporting sustainability goals.
2/ Reduced Operating Costs – Increased market competition is likely to drive more competitive electricity prices, lowering energy expenses.
3/ Attracting Foreign Investment and Manufacturing Expansion– Stable renewable energy supply may encourage global and Chinese manufacturers to invest in or expand their operations in Thailand.
4/ Enhanced Global Competitiveness – The use of clean energy strengthens corporate branding and aligns with global carbon neutrality and sustainable supply chain requirements.
This policy will accelerate energy market liberalization in Thailand, providing businesses with greater flexibility while boosting ASEAN's green energy competitiveness.
Source: https://solarquarter.com/2025/02/17/thailand-to-introduce-direct-ppas-for-renewable-energy-procurement/